In a significant boost for North America’s aluminum sector, Aluminerie Alouette is set to invest up to C$1.5 billion (approx. $1.1 billion) to modernize its operations in Sept-Îles, Quebec.
The investment, expected to be officially announced later this week, reflects the company’s strategic push toward enhancing capacity and efficiency amid growing geopolitical and trade pressures.
According to sources familiar with the development, the funding is tied to a new long-term electricity agreement with Hydro-Quebec, a government-owned power utility — a vital component for energy-intensive aluminum smelting.
A Strategic Move Amid Trade Tensions
This investment comes at a time when the North American aluminum market is being reshaped by international trade disputes and supply chain constraints. Recent U.S. tariff policies — including a 50% duty on imported aluminum — have triggered concern among manufacturers, with downstream users such as Constellation Brands projecting substantial cost increases tied to rising material prices.
In this context, Canada’s role as the leading aluminum exporter to the U.S. becomes even more crucial. Quebec, in particular, plays an outsized role, contributing 70% of North America’s aluminum production.
“Our priority remains to protect our economy and our workers,” said Quebec Economy Minister Christine Frechette in a recent statement, reinforcing the province’s position as a critical supplier to the U.S. market.
Industry Impact and Capacity
Aluminerie Alouette, a consortium jointly owned by Rio Tinto (40%), Hydro Aluminium (Norway), and AMAG Austria Metall AG, operates one of the continent’s most advanced smelting facilities. Located on the north shore of the St. Lawrence River, the smelter has an annual production capacity of 630,000 metric tons and provides employment to approximately 900 workers.
The modernization effort is expected to upgrade aging infrastructure and improve energy efficiency, positioning the facility for long-term competitiveness in the evolving global metals market.
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IMAGE: Bloomberg
